I am an NRE status holder
My wife is not an NRE
I fequently transfer money to her account online ,which she invest in Equity and Equity oriented fund.
Also, we have purchased a property which is on her name.However, I transfer money to her account which she pays to the builder?
Will there be any taxation issue for wife when she files for income tax? She files her return every year?
Is there any legal document which I need to keep ready for this transfer or is there any way of transferring the money without any tax issues for both ?
However I a being an NRE don’t have any taxable income.
Money transferred to relative is neither taxable to you nor to your wife as per Gift Law. However, any income earned from that money is clubbed to you and taxable income under your head as per the provisions of clubbing of income. Hence, you are the responsible person to pay the tax on the income she earn from the money you transferred.
If my Wife beinga housewife is still filing her income tax where she pays tax on all the money invested by her after i have transfered the money.
Evenafter she filing her tax returns ,do i need to file it separately